NEW YORK (BLOOMBERG) - Tom Ford, the luxury brand founded by and named after the former long-time creative director for Gucci, is exploring a potential sale, according to people with knowledge of the matter.
Tom Ford is working with investment bank Goldman Sachs on the effort, said the people, who asked to not be identified because the matter is not public.
A deal could value the company at several billion dollars and may include an option that would give any new owner of Tom Ford the right to work with its founder after the sale, one of the people said.
No final decision has been made and Tom Ford could still opt to remain independent.
While inflation dampens everyday spending, especially for consumers in the United States, higher-end goods tend to be less affected unless a prolonged bear market hits the wealthy, said Mr David Swartz, an equity analyst at Morningstar Research.
“The reality is that we have been in a bull market until really recently and wealthy people are generally in better shape even with the market downturn,” he said. “I don’t hear a lot of concerns about luxury consumption.”
Mr Ford started his namesake company in 2005, a year after leaving Gucci, which he revitalised during a decade-long stint as creative director.
Tom Ford started as an apparel brand focused on luxury menswear. All its suits were licensed to and produced by recently public Ermenegildo Zegna Holditalia until the Fall and Winter 2022 collection, when the exclusive rights expire, Zegna's annual report showed. Zegna will continue to produce some Tom Ford products starting next season.
Tom Ford sells eyewear produced and distributed by Marcolin, as well as beauty and fragrance licensed to Estee Lauder. The brand's offerings also include accessories such as watches and small leather goods.
Mr Domenico De Sole, the former president and chief executive officer of Gucci, serves as chairman of Tom Ford.
Mr Ford debuted as a film-maker in 2009 with the movie A Single Man, starring actor Colin Firth and actress Julianne Moore.
